The French economy grew slightly in the first quarter, which was a bit above analysts’ expectations. According to preliminary data from the INSEE statistics agency, the euro zone’s second-biggest economy saw a 0.2% increase in the first three months of the current year, following a 0.1% growth in the fourth quarter of 2023.
Household spending growth for the quarter accelerated to 0.4%, compared to 0.2% in the previous quarter, indicating a boost in consumer confidence and economic activity. A Reuters poll of 29 economists had forecasted an average growth of 0.1% in gross domestic product (GDP) for the first quarter, with estimates ranging from 0.0% to +0.2%. The reported growth for the quarter aligned with the Bank of France’s expectation announced in early April, setting a promising tone for future economic performance in France.